Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Maybe this has already been answered somewhere - but after several hours of searching I couldn't find the answer to this exact question...

Is there a definition of "substantially identical property" somewhere? Suppose I have an account that contains 100 shares of Yahoo! and has been held long term. However, suppose I also want to actively trade in this account and I short 500 shares of Yahoo! and then close this position a day later. Is this considered a "constructive sale" even though in my mind I am not touching the original 100 shares during this transaction? Can I "specify" that these 500 shares are completely different than the 100 shares of YHOO that I originally purchased several years earlier?

Thanks for any help you can give me,
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.